As the cost of living crisis continues, it has never been more important to keep an eye on your personal finances and household budgets. There are a number of key dates and changes which could affect your wallet in February.
In the next few weeks, there will be announcements about inflation and interest rates. There will also be changes to Universal Credit rules and more energy discounts due - although an increase to the Ofgem price cap is also on the way, meaning bills could rise again.
A potential rise in water bills could also be confirmed. From rising fees to cost of living support, here are some of the key changes that could affect you, as reported by The Mirror.
READ MORE: Full list of one-off DWP payments government is handing out in February 2023
February 2 - Passport fees increasing
The fees for all passport applications - including renewals - will rise on Thursday (February 2). The cost of applying online will increase from £75.50 to £82.50 for adults and from £49 to £53.50 for children.
Paper application fees the cost for an adult will go from £85 to £93 for adults and from £58.50 to £64 for children. Fast track (one week) and premium same-day services are going up as well, along with the fees for applications submitted outside of the UK.
February 2 - Interest rates
On Thursday (February 2), the Bank of England will announce whether interest rates will be raised again. It recently increased the base rate on December 15 from 3% to 3.5% - its highest level in 14 years.
Financial markets expect the central bank to raise this base rate again for the 10th time in a row, by 0.5 percentage point to 4%. This would be the highest level since the financial crisis in 2008.
The base rate is essentially what the Bank of England charges other banks and lenders, which then influences what rates you are charged when you borrow money - such as on mortgages, loans and credit cards. Basically, if interest rates are higher, you'll pay more to borrow and cheaper loans and rates are typically no longer offered.
February 10 - GDP figures
The Office for National Statistics (ONS) will publish its latest gross domestic product (GDP) figures on February 10. This is a measure of the size and health of the economy used to show whether it has grown or shrunk in a certain period.
The ONS has said the UK economy unexpectedly grew by 0.1% in the month to November - but GDP fell by 0.3% between September to November. If the ONS were to record negative growth for the October to December period, then the economy will officially be in recession - as this is defined as two consecutive quarters (six months) of the economy contracting.
February 15 - Inflation
A few days later, on February 15, the ONS will release the inflation rate for the 12 months to January. This figure is used to explain how much the prices of goods and services have increased over time.
If inflation is high, it means prices have risen more sharply - and you're essentially getting less for your money than you did before. Inflation hit a 41-year high of 11.1% late last year but has since decreased slightly to 10.5% currently - remember, this doesn't mean prices are falling, just that they are rising at a slightly slower rate.
February 26 - Universal Credit rule change
Many people on Universal Credit will have to look for work or increase the number of hours they do. At the moment, single claimants working more than 12 hours a week at the National Living Wage don't have to meet regularly with their Jobcentre coach.
However, this threshold is being increased to 15 hours a week - or 24 hours a week if you're in a couple - meaning more people will be pressured into looking for a job or increasing their hours of work or earnings. These regulations came into force yesterday (January 30) but the change will start impacting claimants from February 26.
February 27 - Ofgem price cap announcement
Ofgem will announce its energy price cap for April to June on February 27. Households are currently covered by the Energy Price Guarantee (EPG), which puts the typical energy bill at £2,500 a year, but this will rise to £3,000 a year from April.
However, Ofgem boss Jonathan Brearley last week said it was "possible" the price cap could fall below £3,000 in April due to wholesale gas and electricity prices falling. This is despite analysts at Cornwall Insight recently predicting the Ofgem price cap could hit £3,209 from April.
If this was to happen, the Energy Price Guarantee would remain in place and keep prices to £3,000 on average. Remember, the EPG and the Ofgem price cap just limit the unit rates and standing charges you can be charged - it isn't a cap on your total energy bill.
The £2,500 and £3,000 amounts are just indicative figures based on the average energy use for the "typical household", which help understand how much prices are changing. But if you use more than this amount, you could be charged more than that figure - and if you use less energy than a 'typical' household, it will cost you less.
No set date... Water bill rise confirmed?
Water UK announced how much water bills would rise by on February 4 last year, so there could be a similar announcement in early February this year. Water charges change in April and how much your bill could rise by depends on where you live and how much you use.
Unlike with gas and electricity, you can't switch water suppliers, as this is assigned on where you live - however, water bills won't necessarily rise when the charges are announced. The regulator Ofwat has ordered 11 companies to cut customer bills after they missed performance targets on things like pollution and supply interruptions - meaning some households could soon be paying less.
No set date... Next £67 energy bill discount
The fifth energy bill discount - out of six consecutive monthly instalments worth £400 in total - will be sent out in February.
Households would have received £66 off in both October and November and then a £67 discount in December and January - for a total saving of £266.
Further discounts of £67 - making up the remaining £134 - will be applied in February and March. When and how you pay your bill affect when you get your discount.
Direct debit customers get it automatically, either as a deduction to your monthly direct debit or as a refund to your bank account. For those who pay when they get their bill, the discount will be applied as credit to your energy account each month.
Smart prepayment meter customers also get the discount automatically each month, while prepay customers will be sent vouchers by text, email or post which they then need to redeem.
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